The Case for Using an NFA Registered Managed Forex Program.
As reported on the website ForexFraud.com(http://www.forexfraud.com/forex-articles/managed-forex-accounts.html), there have been many managed forex account managers who have scammed their investors out of their money. Three examples are below.
Richard Matthews JR.
This gentleman founded the White Pines Trust Corporation in San Diego, California in July 2000. Talkative and persuasive, Mr. Matthews was an able marketer in spite of his lack of understanding in the currency trading business. Through various schemes, promises and profit pledges, he was able to pool more than $30 million of client deposits into his pockets, which he then used to acquire a 12-acre island off the coast of Belize.
During the most active period of the White Pines Trust Corporation and its associated Pinnacle Capital Fund, Mr. Matthews claimed an eight-year cumulative return of 591%, while guaranteeing that 75% of customer deposits are protected from loss each month by the use of various complicated but false methods, as eventually confessed by Mr. Matthews himself. Eventually, when he was deprived of his island and other luxurious possessions in order to repay his defrauded customers some $14.8 million, much of which was of course unreachable, having been spent squandered during the heyday of his once great career.
Russell Cline
In proof that a successful life in forex fraud doesn’t require any stellar diploma from a university or years of proven experience. Russell Cline began his meteoric career as a house painter in Baker City, Oregon. Through a dashing, confident attitude to life in general and the audacity provided by his utter lack of knowledge or understanding of the forex market, he was able to lie persuasively by offering his clients risk-free managed accounts facilitated by his sophisticated trading techniques.
After netting around $27 million from 600 clients between 1998 and 2002, Mr. Cline declared that he had lost 97% of the funds, blaming his failure on faulty but honest trading errors. He requested additional funds to continue his rising career as a forex fund manager.
To cut a long story short, it was eventually discovered that he had spent all the client funds on private jets, real estate, boats, luxury cars and pornography. He was sentenced to 8 years and 1 month in prison and was ordered to pay $14.9 million in restitution to clients.
Joel N. Ward
We have discussed the interesting career of Joel N. Ward in the section on Forex HYIP, but to prove how worthless the words and the assumed character of these fraudsters can be, we will just repeat here that this convicted fraudster would sometimes appear on the most reputable financial news channels and newspapers to discuss the ethics of retail forex brokerage and how irrational the expectations of trades were.
So how do you avoid these scams? Make sure you invest using an NFA registered managed program traded by a professional CTA (Commodity trading Advisor). For a full list of managed forex and managed futures programs that are registered with the NFA contact a Summit FX representative at summitfx.courtney@gmail.com or 609-335-7257.